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All Journal East Asian Journal of Multidisciplinary Research (EAJMR)
Aberu, F
Tai Solarin University of Education, Ijagun, Ogun State
Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Industrial & Manufacturing Engineering

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Effect of Credit to Farmers and Agricultural Productivity in Nigeria Adewale, A.T; Lawal O.A; Aberu, F; Toriola A.K
East Asian Journal of Multidisciplinary Research Vol. 1 No. 3 (2022): April 2022
Publisher : PT FORMOSA CENDEKIA GLOBAL

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (353.758 KB) | DOI: 10.55927/eajmr.v1i3.99

Abstract

In Nigeria, there has been a continuous decline in farmers access to credit facilities. This study examined the effect of farmers credit on agricultural productivity from 1981 to 2016 using data from World Bank Development Index (WDI). The result of the Ordinary Least Squares (OLS) estimation shows that agricultural bank credit (β=0.667173, t=5.961095 & P<0.05) exerts a significant positive effect on agricultural output. Bank lending rate (β=1.094792, t=1.295874 & P>0.05) and foreign exchange rate (β=0.124297, t=0.437929 & P>0.05) do not show a significant effect on agricultural output. It was submitted that bank credit has a significant positive effect on agricultural productivity in Nigeria. The need for government to promote savings and bank credit to farmers was recommended.
Co-Authors Adewale, A.T Lawal O.A Toriola A.K